Slippage

Slippage refers to the difference between the expected price of a trade and the actual execution price, common during high volatility or low liquidity. It can be positive (better fill) or negative (worse fill), and affects trading costs. Market orders are particularly vulnerable to slippage, while limit orders can help control execution price.

Example:
An order expected at $25 fills at $25.20 due to rapid market movement.

Disclaimer

This article is for informational purposes only and not intended as investment or financial advice. It contains opinions and speculations that are subject to change without notice.

The author and publisher disclaim any liability for decisions made based on the content of this article. Readers are advised to conduct their own research and consult a financial advisor before making investment decisions.